The Money Supply in Econland Is 1,000, and Currency Held

question 58

Multiple Choice

The money supply in Econland is 1,000, and currency held by the public equals bank reserves. The desired reserve-deposit ratio is 0.25. Bank reserves equal ________.

• A)200
• B)250
• C)500
• D)800

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Definitions:

Third Ventricle

A median cleft between the two halves of the brain that is filled with cerebrospinal fluid.

First Ventricle

Also known as the left ventricle, a chamber of the heart responsible for pumping oxygenated blood to the aorta and systemic circulation.

Limbic System

A complex system of nerves and networks in the brain, involved with instinct and mood, controlling basic emotions, and drives such as fear and pleasure.

Basic Survival Instincts

The innate, automatic behaviors and responses aimed at preserving one’s life and well-being.